I paid cash to buy a home that became a rental property; some of it obtained from mortgaging my own house, and some from cash on hand.
Can the cash on hand be considered a home rental expense? (Expenses you paid for the seller?)
No. It is not an expense. Your cost, no matter how you pay it, is just the cost. Your rental home will be depreciated over 27.5 years.
Note: If your rental property is located out-of-state, make sure you first set up that state properly in Personal Info. That way, when you do your state taxes, we'll be ready to go.
To enter your rental:
Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2021 collected in December 2020 is reported on your 2020 return.
If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.
No. It is not an expense. Your cost, no matter how you pay it, is just the cost. Your rental home will be depreciated over 27.5 years.
Note: If your rental property is located out-of-state, make sure you first set up that state properly in Personal Info. That way, when you do your state taxes, we'll be ready to go.
To enter your rental:
Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2021 collected in December 2020 is reported on your 2020 return.
If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.